- Revenues for the quarter at $3,601,678 compared to $5,352,514 for the same quarter last
year
- Net loss of $382,635 compared
with net income of $109,958 in
2012
- First quarter shipments impacted by severe weather
conditions leading to strong backlog entering Q2
- Net borrowings are down by 25% from $10,226,106 as of March
31, 2012 to $7,670,900
QUEBEC CITY,
May 16, 2013 /CNW Telbec/ - Novik
Inc. (TSXV: NVK) releases today its 2013 first quarter results. All
amounts are expressed in Canadian dollars.
|
|
|
NOVIK INC.
for the periods ended March 31, 2013 and 2012
(in thousands of dollars, except data per
share) |
Period of
three months
2013 |
Period of
three months
2012 |
|
$ |
$ |
Operating results |
|
|
|
|
|
Revenues |
3,602 |
5,353 |
Gross margin |
1,327 |
2,170 |
Earnings (loss) before interest,
income taxes, stock-based
compensation costs, depreciation, and amortization |
(59) |
745 |
Net earnings (loss) |
(383) |
110 |
Basic and diluted net earnings (loss) per
share |
(0.008) |
0.002 |
|
|
|
|
|
|
NOVIK INC.
(in thousands of dollars, except data per share) |
March 31
2013 |
December 31
2012 |
|
$ |
$ |
Financial position |
|
|
|
|
|
Total assets |
23,918 |
24,703 |
Working capital |
3,642 |
4,494 |
Long-term debt including the current portion |
6,537 |
6,839 |
Total liabilities |
10,051 |
10,461 |
Shareholders' equity |
13,868 |
14,242 |
Shareholders' equity per share |
0.28 |
0.29 |
|
|
|
Number of outstanding shares |
48,825,858 |
48,825,858 |
Mr. Michel Gaudreau,
Chairman of the Board, was pleased that the corporation's financial
results remained relatively strong during the first quarter while
combating the operating environment. Mr. Gaudreau stated "the
severity of the weather conditions that prevailed in the general
northeast and midwest quadrants of the
United States through a great part of the first three months
of the year had a detrimental impact on the housing and home
repairs construction business to the extent that it materially had
a negative impact on Novik revenues. This region represents Novik's
largest market in the United
States".
REVENUES
During the first quarter of 2013, the corporation
generated $3,601,678 in revenues
compared with $5,352,514 in 2012, a
33% difference explained primarily by the weather situation
described above. The consequences of those conditions resulted in a
deferment in demand for our current and new products, in the
execution of a significant private label agreement and a new
distribution agreement for Novik branded products.
Our sales team is focusing on developing strong and
strategic partnership with retailers and distributors in order to
take advantage of business opportunities existing on the North
American market even in the current market conditions.
EARNINGS BEFORE DEPRECIATION, AMORTIZATION,
FINANCIAL EXPENSES, STOCK-BASED COMPENSATION COSTS AND TAXES
("Adjusted EBITDA")
Adjusted EBITDA is a measure that has no
standardized meaning prescribed by international financial
reporting standards (IFRS). It is therefore considered to be a
non-IFRS measure in Canada.
Accordingly, this measure may not be comparable to similar measures
presented by other issuers. This measure is presented in order to
provide shareholders and potential investors with additional
information regarding the corporation's liquidity and ability to
generate funds to finance its activities.
For the first quarter 2013, adjusted EBITDA
amounted to $(58,991) compared with
$745,300 for the same period of the
previous fiscal year.
NET EARNINGS
The net loss for the first quarter of the fiscal
year 2013 was $382,635 compared with
net earnings of $109,958 for the same
quarter of the previous fiscal year. Due to seasonality, the
corporation historically produces a net loss in its first quarter
of the fiscal year. As explained earlier, the first quarter
of 2012 was much higher than usual while its first quarter of 2013
although soft, is much closer to historical trends.
OUTLOOK
Mr. Gaudreau concludes "that even if the industry
is still facing challenges, Novik has succeeded in producing
positive results over the past two years."
The innovation efforts made in recent years in
marketing of new sophisticated, unique products have allowed Novik
to better position itself in the industry and to stand out even
more from its competitors. At the same time, internal efforts
to generate operational savings through better use of raw
materials, equipment, and value-added production methods have
allowed Novik to improve its profitability despite the constant
pressure of raw material price levels.
The US housing market is starting to show signs of
sustained improvement should create additional demand for the
corporation's product. Whereas the first quarter is
historically more variable due winter conditions, we expect that
the second quarter will produce improvement over last year.
The introduction of a unique and exciting new
product at the end of the first quarter 2013 has already made its
impact in much improved order book. By the end of the first
quarter, the corporation has also finalized a new agreement with
one of the largest two step distributors in the USA that is expected to produce additional
market share for the balance of the year.
"We believe that Novik is positioned to capture
additional market share in 2013 given the addition of senior sales
management in the latter part of 2012 to maximize our presence with
our current and potential distributors on an increasing scale on
the North American markets" added Mr. Gaudreau. "We keep our focus
on creating value for the shareholders not only by increasing our
sales volume but also by organizational efficiency".
OTHER
Following the annual general meeting held this
morning, the directors have approved the grant of 800 000 stock
options available to directors and certain officers at $0.42 a share, options which we issued as per the
compensation package allowed by the corporation to its officers and
directors.
About NOVIK
Novik (NVK) is a leader in the design, manufacture
and distribution of innovative polymer exterior siding, roofing
coverings and accessories that replace traditional materials such
as stone, brick or wood shingles. These products target the
world-wide residential and commercial construction industry.
Forward-looking statements contained in this
press release involve known and unknown risks, uncertainties or
other factors that may cause actual results, performance or
achievements of the corporation to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements.
SOURCE Novik Inc.